Aussie builders making smaller houses, study shows
Aussies who are attempting to secure a home loan before getting their first foot on to the property ladder may have to settle for a smaller house than they originally expected.
This is because a new study, conducted by Bloomberg, has indicated that major homebuilders are scaling down the average size of new properties because of reduced demand and high land costs.
Over the last three years, construction specialist Stockland has reduced the average size of its new developments by 20 per cent. Peet and Australand Property Group are also making economies, the research discovered.
"There's an affordability crisis in Australia and one way of keeping the price point where people can afford it is to reduce the size," commented national president of industry group Urban Development Institute of Australia Peter Sherrie.
A recent survey conducted by Mortgage Choice found that a growing number of Aussies are getting their finances pre-approved before committing to home loans.
Have a question about home loans? Ask the money gurus at Mozo Answers.